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Buying a New Build Home: A Mortgage Advisor’s Insider Guide
- Lana Hart
- 1 hour ago
- 3 min read
Buying a brand new home is exciting. The thought of being the first person to live in a sparkling kitchen or a pristine bathroom is a dream for many. But as a mortgage advisor, I see a lot of buyers get caught off guard by the financial twists and turns unique to new builds.
If you’re considering a new build, here’s everything you need to know to keep your wallet (and sanity) intact.
1. New Builds Aren’t Like Any Other Home
Unlike older homes, new builds come with their own rules when it comes to financing. From deposits to optional upgrades, there’s more to consider than just the asking price. Lenders often treat new builds differently, and timing can be tricky if you’re buying off plan — before the house is built.
2. Deposits: Expect to Put More Down
For most new builds, the deposit is typically 5–10% of the property price. That’s often more than what’s needed for older homes, and builders sometimes require it upfront to hold your chosen plot.
Pro Tip: Have your deposit ready before reserving a plot to avoid losing your spot.
3. Don’t Forget the Extra Costs
New builds can look all inclusive, but there are several costs buyers often overlook:
Legal fees – a solicitor experienced in new builds is a must.
Stamp Duty – speak to us today to check your Stamp Duty costs.
Upgrades & extras – kitchens, bathrooms, smart home tech.
Estate management fees – some developments charge ongoing service fees.
4. Mortgages: What You Need to Know
Here’s where having a mortgage advisor makes a difference:
Standard vs. new build specific mortgages: Some lenders have restrictions or special deals for new builds.
Valuation quirks: Lenders may value a home at its base specification, not including upgrades.
Off plan purchases: Lenders may need extended offers if construction is delayed.
Expert Tip: Speak to an advisor before reserving your plot — it saves headaches and ensures your financing is lined up.
5. Buying Off Plan: Risks and Rewards
Many buyers fall for the allure of customizing their new home before it’s built. But there are financial considerations:
Delays happen: Construction doesn’t always go to plan — your mortgage offer may need extending.
Deposit protection: Know when your money is refundable if things go wrong.
Contracts: Understand the difference between a reservation agreement and a full exchange.
Advice: Treat off plan purchases with caution and make sure your mortgage lender is comfortable with the timeline.
6. Upgrades: Luxury vs. Mortgage Value
It’s tempting to add that extra £10k for a designer kitchen, but lenders may not value the home higher for those upgrades.
Tip: Focus on essentials that add real value and avoid over spending on cosmetic extras that don’t affect your mortgage.
7. The Legal Side Matters
Even though it’s brand new, some steps are recommended:
Snagging surveys: Recommended to check for defects before completion.
Exchange vs. completion knowledge: Know when your deposit is protected and when the mortgage is released.
The right solicitors: Using solicitors experienced with new builds ensures your contract protects you.
8. Moving In and After
Once you get the keys:
Check warranties and appliance manuals.
Plan for ongoing costs like council tax, service charges, and insurance.
Pro Tip: Keep all paperwork organized — it helps if anything needs to be claimed under warranty.
9. Insider Tips from a Mortgage Advisor
Speak to a mortgage advisor before you reserve — not after.
Budget for all costs, not just the house price.
Make sure your lender is comfortable with new build mortgages.
Factor in delays or surprises with contingency funds.
Keep contracts, receipts, and correspondence organized — lenders may ask for proof.
The Bottom Line
Buying a new build home can be thrilling — but it requires careful financial planning. With the right advice and preparation, you can navigate deposits, mortgages, and legal hurdles smoothly and move into your dream home without stress.
As a mortgage advisor, my best advice is simple: plan ahead, budget wisely, and get professional guidance early. It’s the difference between a smooth move in and a stressful surprise.
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